The Global Retirement Index 2026 ranks Paraguay as the world’s sixth-best country for retirees, recognising it as a top retirement destination. The report, compiled by consultancy firm Global Citizen Solutions, awarded the nation a score of 98.2 out of a possible 100.
The study analysed and compared 46 different residency programmes aimed at retirees and individuals with passive income. Paraguay secured its high ranking due to outstanding results in categories such as cost of living, investment opportunities, and the efficiency of its residency application process.
The index guides individuals looking to settle abroad in their later years, a trend gaining popularity as life expectancy rises and international mobility increases.
Evaluating global retirement programmes
The Global Retirement Index assesses countries across five key areas: quality of life, mobility and citizenship, tax optimisation, application procedures, and costs and investment. The report highlights that Paraguay offers a straightforward path to permanent residency for applicants who can demonstrate financial solvency.
This process is governed by the country’s updated Migration Law, No. 6984/2022, and further clarified by DNM Resolution No. 407/2026. The law does not set a specific minimum income for the initial temporary residency stage. Global Citizen Solutions uses US$1,200 in monthly passive income as a benchmark to evaluate the programme. This income may come from pensions or dividends. The estimated processing time for residency is between three and six months.
Favourable tax conditions for retirees
A significant factor in Paraguay’s high ranking is its attractive tax system. The report emphasises the country’s territorial taxation policy, which means foreign-sourced income, including pensions, is not taxed locally. This allows retirees to retain their full pension without deductions.
Furthermore, Paraguay does not levy wealth or inheritance taxes, adding to its appeal for those looking to optimise their finances during retirement. The analysis also considers relocation costs and whether applicants can include dependent family members in their residency applications. These factors contribute to a country’s overall attractiveness.
How Paraguay compares to other top destinations
The 2026 index is led by Uruguay, which scored 99.9 points. It was followed closely by Mauritius at 99.8, Spain at 99.6, Costa Rica at 99.5, and Portugal with 99.3 points. Paraguay completed the top six, outperforming many other popular retirement destinations.
Each of the top-ranking countries offers distinct advantages. For example, Uruguay’s programme requires a monthly income of approximately US$1,500 and provides a direct route to permanent residency. Costa Rica’s well-known pensionado visa requires a lifetime pension of at least US$1,000 per month.
Meanwhile, European destinations like Spain and Portugal require proof of passive income equivalent to at least the national minimum wage or higher, with Spain’s non-lucrative visa demanding around €28,800 annually.
